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IORMA LUXURY CENTRE UPDATE: THE FASHION INDUSTRY IN 2024 Edited by: Pandora Mather-Lees, Luxury Director, IORMA Research: Aleksandra Basova, IORMA Researcher September 2024 In this comprehensive exploration of the luxury fashion sector, we delve into the intersection of technology, consumer behaviour, and innovation. Representing IORMA’s Luxury Centre, we take a look at the evolving landscape of luxury fashion, identifying key trends that are shaping the industry’s future. From digital transformations to sustainability initiatives, this article uncovers the strategies and innovations that will define the luxury fashion sector in the coming years. View the Executive Summary and Download the FREE Full Report here:

As we close 2024, the luxury fashion industry stands at a crossroads. This year, brands balanced tradition with transformation, navigating economic uncertainties, shifting geopolitics, and changing consumer expectations. In between challenges, collaboration emerged as a standout strategy. Collaborations in luxury fashion were a catalyst for creativity, allowing brands to reach new audiences and craft compelling narratives. Some of the most successful included: - Porsche AG x Imon Ri: Engineering meets wearable art. - Skins x Charlie XCX: A bold take on intimate fashion. - Lacoste x Chatô Mezon Rug: Sport meets French classicism. - Tyler the Creator x Louis Vuitton: Personal style fused with timeless luxury. Louis Vuitton led the way, relaunching iconic collaborations with Takashi Murakami and Yayoi Kusama, while reinventing the Neverfull bag. These moves were not just nostalgic callbacks but strategic responses to economic uncertainty, minimizing risks and deepening emotional connections. Why brands reached out to collaborations, and why did they work: 1 - Reaching New Audiences: Collaborations helped brands connect with younger, diverse demographics valuing authenticity and exclusivity. 2 - Capitalizing on Nostalgia: Revisiting past successes blended nostalgia with relevance, engaging both loyal and new customers. 3 - Risk Mitigation: Proven collaborations provided stability in an uncertain market. 4 - Cultural Relevance: Partnerships fueled cultural conversations, turning collections into shared moments. A personal view for 2025 and beyond: Luxury brands must evolve collaborations into lasting impact while addressing systemic shifts. 1 Purpose-Driven Partnerships Future collaborations must align with sustainable practices and meaningful impact, focusing on ecological regeneration and circular design. 2 - Hyper-Personalization Advances in AI and digital fashion will enable bespoke, exclusive designs tailored to individual identities. 3 - Sustainability as Strategy Luxury must prioritize regenerative materials, carbon neutrality, and sustainable innovation to meet global demands. 4 - Timeless Value Over Growth Enduring design and repairability should replace fast cycles, fostering lasting value over volume-driven growth. 5 - Blending Digital and Physical Expect deeper integration of virtual and physical luxury, where digital worlds drive storytelling and exclusivity. Luxury has always reflected cultural shifts. In 2025, it must lead not just in creativity, but in driving systemic transformation. True luxury lies in legacy, sustainability, and timeless relevance.

The fashion luxury industry is at a crossroads, navigating fleeting trends, rising costs, and the rise of circular fashion. Traditional brands must adapt to second-hand luxury fashion, which is redefining luxury for modern consumers. https://lnkd.in/grVDx4Wm

#Personalization is revolutionizing the luxury fashion sector by offering consumers unique experiences that align with their individual tastes and values. This trend not only enhances the perceived value and exclusivity of luxury items but also fosters deeper emotional connections between brands and their discerning customers, driving innovation and growth in an increasingly digital and demanding market. #LuxuryFashion #Personalization #LuxuryBrands #FashionInnovation #CustomerExperience #SustainableFashion #TechInFashion #LuxuryMarket #DigitalLuxury #ExclusiveDesigns #FashionTrends https://lnkd.in/dnuU8YTN

1/2: Pricing, Quality, and the Battle for Exclusivity Is Luxury fashion at a crossroads. In her New York Times article, “Obscene Prices, Declining Quality: Luxury Is in a Death Spiral,” Katharine K. Zarrella argues that luxury brands are breaking the principles that once made them successful—grappling with inflated pricing, declining quality, and overexposure. Meanwhile, Robert Williams in Business of Fashion highlights that “Luxury Has a Pricing Problem” and calls for recalibration to address falling demand and shifting consumer values. Together, these critiques underscore the identity crisis luxury faces today. A £3,000 cashmere sweater paired with £75 Mango pants in Vogue or any of the various industry editoials reflects a consumer shift: individuality is prized, but luxury brands risk losing control of their narrative. Meanwhile, mass-market players like Zara and Uniqlo are mastering luxury’s playbook—without the price tag. Zara, with Samuel Ross, is elevating fast fashion with sharp tailoring and bold designs. Uniqlo, with Clare Waight Keller as creative director, alongside Christophe Lemaire and Sarah-Linh Tran, bridges affordability and refinement, borrowing luxury codes while staying accessible. At #BoFVOICES2024, @JesseLee warned of “commoditization and overexposure” in luxury. This echoes Zarrella and Williams: can luxury remain exclusive while balancing accessibility? Key Challenges for 2025: 1. Soaring Prices, Declining Value: Prices are growing at twice the rate of inflation (Bain & Company), contributing to a 2% sales decline in 2024. Consumers now question if premiums reflect craftsmanship—or just profit margins. 2. Blurred Boundaries: Zara and Uniqlo don’t claim to be luxury, but their elevated designs are reshaping expectations, making luxury feel less aspirational. 3. Recalibrating Exclusivity: With younger consumers prioritizing sustainability and storytelling, how can luxury adapt while maintaining mystique? The Path Forward Luxury brands must ask: • Can they recalibrate pricing without losing perceived value? • How can they protect their narrative from mass-market borrowing? • Will they preserve heritage or pivot to cultural relevance? As BoF notes: “Reigniting demand” will require pricing and storytelling shifts. Without recalibration, Zarrella’s warning looms large, with luxury becoming indistinguishable from the mass market. What’s Next? With Zara redefining fast fashion and Uniqlo bridging functionality with design, the ‘high-low’ mix is reshaping fashion. Luxury must innovate strategically, preserving mystique while embracing sustainability and cultural relevance. What’s your take—are we witnessing the dilution of luxury or its evolution? #LuxuryFashion #PricingCrisis #ExclusivityVsAccessibility #HighLowStyling #MassMarketImpact #Sustainability #BOF #VogueBusiness @RobertWilliams Katharine K. Zarrella

Raised amidst heightened environmental awareness, we the Gen Zers are driving a shift towards sustainability by embracing the pre-owned luxury market. This trend sees individuals buying and selling used luxury items like designer apparel, handbags, and jewelry, offering a blend of affordability and eco-conscious choices. Key highlights inside:https://zurl.co/T4Il #GenZLuxury #SustainableFashion #PreOwnedMarket #LuxuryResale #EcoFriendlyLuxury #InfluencerFashion #SecondHandLuxury #LuxurySustainability #LuxuryTrends

💭 Which do you value more when it comes to fashion: timeless luxury or affordable trends? In today’s fashion world, two forces are battling for consumer loyalty: luxury fashion and fast fashion. Luxury brands like Chanel and Gucci offer exclusivity, craftsmanship, and sustainability, while fast fashion giants like Zara and H&M cater to those seeking affordability and the latest trends. But as the conversation around ethics and sustainability grows louder, both sides face unique challenges. In my latest article, I dive into: How luxury fashion builds long-term loyalty through craftsmanship and quality. Why fast fashion’s speed and accessibility have changed the game. The growing pressure on both models to address sustainability and ethical production. What the future might hold for both industries as consumers become more conscious of their choices. 💡 Where do you stand? Is luxury fashion worth the investment, or does fast fashion still hold its appeal in today’s conscious market? 👉 Read the full article here: https://lnkd.in/dTRTxDVb Let’s talk about it in the comments—how do you see fashion evolving in the next decade? Which model will come out on top? 👇 #LuxuryFashion #FastFashion #Sustainability #FashionIndustry #ConsumerTrends #FashionEthics #BusinessOfFashion #RetailTrends #BrandAwareness #FashionDebate

Innovation in the Luxury Fashion Industry As professionals in the luxury fashion industry, we're called to embrace innovation as the engine of change. It's time to move beyond conventions and embrace new ideas and approaches that allow us to stand out in the competitive arena of luxury fashion. Innovation isn't just a buzzword but an imperative to remain relevant and thrive in an ever-evolving environment. From emerging technologies to new modes of production and distribution, we must be ready to adapt and adopt what allows us to push boundaries and meet the ever-changing needs of our customers. As a seasoned professional in the luxury fashion sector, I've witnessed the transformative power of innovation. From integrating sustainable materials to advanced production technologies, innovation is the key to creating high-quality products that stand out in the global market. However, innovation isn't just about the product. It's also a mindset that permeates every aspect of my work, from the customer experience to supply chain management. I am open to change and ready to embrace new strategies and processes that allow to stay ahead of market trends and meet the ever-growing expectations of consumers. The future of luxury fashion is in our hands and depends on our ability to embrace innovation with boldness and determination. It's time to raise the stakes and drive change towards a brighter and more innovative future for the entire luxury fashion industry. Join me in my commitment to a more innovative and future-oriented luxury fashion sector. I believe we can turn challenges into opportunities and shape a better future for all of us. #Innovation #LuxuryFashion #Change #Determination #SustainableLeadership #FashionIndustry #FashionInnovation #FutureFashion #LuxuryTrends #FashionForward #InnovativeDesign #FashionTech #LuxuryLifestyle #FashionCreativity #FashionInnovators

Second-Hand Luxury: Balancing Sustainability with New Collections The luxury #fashionIndustry is uniquely positioned to capitalize on the second-hand market. As a marketing director with most of my 20 years of experience in #Fashion, I've observed how high-end brands leverage this trend. The rise of the second-hand market, fueled by consumer demand for #sustainability and corporate social responsibility (#CSR), presents a significant opportunity for luxury brands, with the sector representing over $51 billion last year. Thus, brands can address environmental concerns while maintaining exclusivity by aligning with the United Nations' Sustainable Development Goal 12. This new revenue stream enhances customer loyalty by providing an entry point for future high-end purchases. 🔍 Platforms like Vestiaire Collective or The RealReal have demonstrated the resale market's profitability via a broader audience attraction, including younger, eco-conscious consumers. Controlling the resale market allows brands to ensure their products are #authenticated and maintain their value, preserving the brand’s prestige while promoting #sustainable practices. Galeries Lafayette and Printemps have dedicated spaces for pre-owned luxury items. Galeries Lafayette's "Le Good Dressing" offers curated collections of second-hand fashion, focusing on sustainability and ethical consumption while Printemps has introduced "La Reboucle," a similar initiative emphasizing circular fashion & providing customers with a platform to buy and sell pre-owned luxury goods. On the same vibe, Gucci’s partnership with The RealReal has boosted the brand’s value and showcased its commitment to sustainability, with The RealReal sponsoring the planting of a tree each time someone buys a Gucci item. Similarly, Burberry’s platform, ReBurberry, ensures the authenticity & quality of its resold items, successfully attracting environmentally-conscious consumer. The messaging distinguishing clearly new & second-hand offerings is crucial to avoid cannibalisation of new sales. #Marketing campaigns should highlight the exclusivity & innovation of new collections. #ConsumerEducation is also vital as well as the #positioning of #SecondHandLuxury as a savvy, eco-friendly choice rather than a compromise to allow a positive shift of perception. 📈 Financially, by tapping into the resale market, brands can monetize items that would otherwise be traded without their involvement, capturing a share of the secondary market’s revenue. It also drives traffic to their primary offerings, as consumer who engage with the brand through resale may also purchase new items. To my fellow textile professionals, brand directors, business leaders and marketeer, how are you navigating the integration of second-hand sales while maintaining brand integrity and #innovation? READ ME - LIKE ME - SHARE ME #LuxuryMarketing #BrandLoyalty #MarketingStrategy #Marketing2024 #SDG12 #PassionforRetail #Paris2024 #AudreyBeylemans